KrispyKreme/JAB Holdings/JAB Beech in Charlotte

[Scribe]

Quote

German JAB Holdings, through its subsidiary JAB Beech, acquired Krispy Kremeand took it private in 2016. In the past year, JAB has purchased Panera Bread and Bruegger's Bagels. JAB agreed to buy Caribou Coffee in late 2012, and bought Einstein Bros. Bagels in 2014.

So bringing some or all of the JAB breakfast and coffee chains under one roof — and consolidation of central staff functions — would seem a logical possibility.

Saw this at the end of the article and thought, is it possible that JAB is actually planning or has a (new) tower planned in Charlotte?

First thought, the new 3rd & Baldwin tower had specified boardroom in the designs submitted which a few of the UP members felt indicated high probability of a tenant being on board.

But then you have all these other projects in the works as well, and the consolidation of financial, legal and HR roles from across all the businesses JAB has snapped up in the last few years, makes it look plausible.

https://www.bizjournals.com/charlotte/news/2017/12/05/krispy-kreme-remains-mum-as-rumors-of-imminent.html

[teeg]

Probably random, but sketches of the 3rd / Baldwin tower had ground floor restaurants that included "Bread" something and "The Java Shot"

[KJHburg]

I would not think a new tower but leasing some space in an existing building. I will tell you a good building uptown is the 300 South Brevard building. they could get branding and room for an uptown ground floor Krispy Kreme and Caribou shop right by a light rail station.  Read the story for Winston Salem Journal  http://www.journalnow.com/business/layoffs-at-krispy-kreme-could-come-this-week/article_513622f7-38f7-5460-a945-4c8f0cfeb6c8.html?ito=792

To me it seems the German owner is trying to consolidate all the breakfast companies with some shared office space in a city like Charlotte.  This is good news for the city and with direct flights back to Germany seems like Charlotte would be a natural fit. 

Key takeaway from article above and these are Charlotte strengths. 

""Sources have since told the Journal that senior management, marketing, information technology and design headquarter employees would be among those moving to Charlotte, while finance and other headquarters would be moving to a smaller space in Winston-Salem.""

Edited December 5, 2017 by KJHburg

[queensguy06]

Well, if I'm reading a part of This Oct. 31 article, the new chief executive that JAB installed over Krispy Kreme (Mike Tattersfield) is also the chief executive of Caribou and Einstein:

Quote

Tattersfield has served as Krispy Kreme’s chief executive since Jan. 1 after becoming its chairman as part of the JAB Beech purchase. Tattersfield has kept his chief executive duties with Caribou Coffee and Einstein Bagels, two other JAB brands.

He just bought a $1.32 million house on Lake Norman in August.

Edited December 5, 2017 by queensguy06

[Popsickle]

As a Winston native, Damn you Charlotte, first it was Wachovia, now going after Krispy Kreme, what's next Texas Pete?!? 

[KJHburg]

^^ I know I just was up there and I hate that but if it means keeping the jobs in NC versus moving out of state it is better.  Downtown WS is really changing with the Innovation Quarter and all.  And no Texas Pete is yours! 

[KJHburg]

Here is the new Doughnut Tower in Midtown thanks to @ricky_davis_fan_21 for the graphics.  (and ground floor drive through for your chocolate iced and coffee)   (and this is just my imagination don't take this to the bank....yet) 

[Niner National]

Doesn't really seem like the kind of company to located in a tower in uptown IMO, but what do I know?

[RiverwoodCLT]

It could be for  all the holdings of JAB Beech .

Edited December 5, 2017 by RiverwoodCLT

[AirNostrumMAD]

1 hour ago, Niner National said:

Doesn't really seem like the kind of company to located in a tower in uptown IMO, but what do I know?

I would agree. However, a commute to SouthPark/South Charlotte and Ballantyne would be annoying from Lake Norman where the ceo will live. 

center city, university city, and North Lake seems reasonable. Unless the CEO won’t be committing daily. 

 

Edited December 5, 2017 by AirNostrumMAD

[Dale]

1 hour ago, Niner National said:

Doesn't really seem like the kind of company to located in a tower in uptown IMO, but what do I know?

I know I never envisioned a banana company going in a tower downtown.*

*hope I didn't stir up bad memories

[Cadi40]

Also they never confirmed a tower, they could just be leasing minimal space or renting a space in Ballantyne or something. I wouldn't get too excited, The most I could see happening is them leasing 40K Feet in Legacy Union or the new Ally Tower. I would love for all of JAB To be under one roof, But I just don't see it happening. However that said, I wouldn't be surprised if it did happen and they end up leasing a marginal amount or even build. Just my two cents

[KJHburg]

If this comes here I think they will go into a existing building plenty of choices and yes I do think uptown as I have heard they have some people in WeWork  in 615 South College which by the way has 100K sq ft block of space.  Anyway this rumor is too strong to not think there is some truth.   And yes CEO living in Lake Norman means uptown or northward office.  I think it would be smart to consolidate some of these functions with their different companies in a "neutral" spot like Charlotte.  Just a nonstop flight back to Germany away for the owners. 

Update actually Krispy Kreme has 18 people working at WeWork in Charlotte that seems to be the beginning of an office to me and wide variety of jobs too. 

Edited December 6, 2017 by KJHburg

[AirNostrumMAD]

12 minutes ago, Cadi40 said:

Also they never confirmed a tower, they could just be leasing minimal space or renting a space in Ballantyne or something. I wouldn't get too excited, The most I could see happening is them leasing 40K Feet in Legacy Union or the new Ally Tower. I would love for all of JAB To be under one roof, But I just don't see it happening. However that said, I wouldn't be surprised if it did happen and they end up leasing a marginal amount or even build. Just my two cents

ATT building uptown. Railyard and other SouthEnd office buildings. The office tower by Skyhouse where Publix is supposed to go. 615 College. I think those are reasonable. 

The Knights baseball lot. 

[Cadi40]

I do think the move to Charlotte is logical for obvious reasons, Better airport, Larger City, Etc.

[Scribe]

In a ~4-5 year stretch they have spent $23 billion building the current portfolio and the $8.2 billion offer that they were putting together last month for Dunkin Brands... this is a company that is thinking big, I think they deserve a tower in or around Uptown Charlotte! Plus, if they have that kind of dough, they can afford their own tower!

In the end, this is just my wishful thinking.

Quote

JAB has invested heavily in the coffee and doughnut sectors in recent years, spending a combined $23 billion on buying Krispy Kreme, Panera Bread, Keurig Green Mountain, Peet’s Coffee and Caribou Coffee.

 

[TheOneRJ]

13 hours ago, Popsickle said:

As a Winston native, Damn you Charlotte, first it was Wachovia, now going after Krispy Kreme, what's next Texas Pete?!? 

BB&T. 

[RiverwoodCLT]

5 hours ago, TheOneRJ said:

BB&T. 

 

5 hours ago, TheOneRJ said:

BB&T. 

I feel your pain.

[49er]

I would love for KK to stay in Winston but now that they are just part of a holding company it's no longer about hometown roots for them.  

[CLT2014]

http://www.journalnow.com/news/local/krispy-kreme-eliminating-local-jobs-as-part-of-restructuring/article_42ddbb49-30c9-527a-a40c-20818d439567.html

90 positions being eliminated in Winston-Salem (which will remain HQ). They officially are opening an office in Charlotte and London as well. All in Charlotte will likely get all major future job growth of the company and get a portion of the 90 positions eliminated in Winston-Salem. 

Sources have told the Winston-Salem Journal that senior management, marketing, information technology and design headquarters employees would be among those moving to Charlotte, while finance and other headquarters would be moving to a smaller space in Winston-Salem.

Edited December 6, 2017 by CLT2014

[KJHburg]

Here is the Triad Business Journal story article about it

https://www.bizjournals.com/triad/news/2017/12/06/krispy-kreme-confirms-itscutting-90-jobs.html?ana=e_triad_bn&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1512601902&j=79298531

And I mentioned there are already 18 Krispy Kreme employers working out of WeWork in uptown Charlotte.   I do agree the majority of future growth will be in Charlotte. 

[KJHburg]

Here is the Winston Salem Journal article and this paragraph tells the reason for the change really

""Joines said he has heard, and sources have told the Journal, that Krispy Kreme is saying it is struggling to find skilled workers in Winston-Salem, and that some officials new to the company say Winston-Salem is proving to be a challenge to recruiting potential employees accustomed to living in a bigger city.""

http://www.journalnow.com/news/local/krispy-kreme-eliminating-local-jobs-as-part-of-restructuring/article_42ddbb49-30c9-527a-a40c-20818d439567.html

Reminds me of several recent relocations like the NN Corporation which is moving from Johnson City TN and even Lowes moving most of their people to Mooresville to tap into the larger Charlotte market.    Sounds like the international business is going to London and I bet the office in Charlotte will be uptown. 

[CharlotteWkndBuzz]

^Do you think that they are testing the clt market and seeing how things unfold. Basically, is the HQ remaining in winston a temporary thing and that it is just a matter of time before all their operations transition to CLT/London?

Edited December 7, 2017 by CharlotteWkndBuzz

[Missmylab4]

My best guess is a tenant kicked out of BofA Corporate Center that isn’t an accountant firm. I’m guessing they have someone as well. 

[KJHburg]

^ That I don't know could be. Lowes tested the Charlotte labor market first by many years ago having their online sales department in Huntersville. Several years later they announced headquarters was moving to Mooresville.  Krispy Kreme has been based in Winston since founding see the photo below I just took this weekend while in Old Salem.  However I dont think it is has been the best run over the years, the product is great but they have had franchisee problems.  I do think to attract some of the top marketing and other HQ people they needed to move to a bigger city.   MSC Industrial Supply has dual headquarters in Davidson and on Long Island where they were founded.  All of the new growth will be in the Davidson office due the difficulty of attracting people to Long Island.  I think this maybe a similar situation where the growth will be in Charlotte or London with some jobs back in Winston.  

2 minutes ago, Missmylab4 said:

My best guess is a tenant kicked out of BofA Corporate Center that isn’t an accountant firm. I’m guessing they have someone as well. 

Is this about Krispy Kreme or you talking about a tenant to anchor another office tower?  Or is a Krispy Kreme going into Founders Hall and I would love that!